VSAC Vermont Choice Loan

VSAC's fixed-rate education loan for students

The VSAC Vermont Choice Loan is a non-federal education loan for students who meet established eligibility criteria for specific programs.

Review the details in the tabs below and begin your application when you're ready.

If you have additional questions, call a VSAC loan counselor at 800-226-1029 (Monday–Friday 8:00 am to 4:30 pm).

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VSAC VERMONT CHOICE LOAN ELIGIBILITY

To apply for the Vermont Choice Loan, the student borrower must:

  • be enrolled in an eligible non-Title IV program as determined by VSAC, OR
  • have a qualified back balance at a Title IV institution, from a term ending no more than 24 months in the past

and:

  • be a Vermont resident attending in or out of state, or a nonresident borrowing for attendance at a Vermont school
  • is U.S. citizen or eligible non-citizen
  • is applying with an eligible credit-approved cosigner
  • is not in default on an education loan

If you're unsure whether you meet the eligibility criteria, please contact a VSAC loan counselor at 800-226-1029 (Monday–Friday 8:00 am to 4:30 pm).

Ready to apply?

Start your secure application through MyVSAC.

VSAC VERMONT CHOICE LOAN COSIGNER

VSAC requires a credit-eligible cosigner for the VSAC
Vermont Choice Loan.

A student applicant needs a cosigner to... apply for a Vermont Choice loan.
A cosigner... is a U.S. citizen or eligible noncitizen (frequently the student applicant's parent or guardian) who is equally responsible for repaying the loan.
A cosigner who meets our excellent credit will... enable the student applicant to get a 0% origination fee loan.
Cosigner's responsibilities include...

(1) making payments, including any late or collection fees if the student borrower is unable to pay.

(2) signing all paperwork along with the student borrower.

As a cosigner, expect to...

(1) receive the same monthly bill statement for the loan that the student borrower receives.

(2) have the loan's payment status reported to national credit bureaus.

Cosigner release may be available... upon request to borrowers who meet VSAC's credit criteria after 48 months of active repayment.
Loan debt is cancelled completely... if the student dies or becomes totally and permanently disabled. If the cosigner dies or becomes totally and permanently disabled, the cosigner is removed from the loan, which remains in the student's name.

 

Ready to apply?

Start your secure application through MyVSAC.

VSAC VERMONT CHOICE LOAN REPAYMENT & INTEREST RATE

With the VSAC Vermont Choice Loan you'll be making monthly principal and interest payments while enrolled.

LOAN REPAYMENT TERMS

  • Immediate repayment:
    • Principal and interest payments are due right away
    • First monthly payment due within 45 days of the final disbursement to the school
  • The length of the repayment term is determined by the loan amount:
    • 10 years for loans up to $9,999
    • 15 years for loans of $10,000 and above
  • Payments are required monthly. There are no prepayment penalties.
  • Any outstanding interest is added to the principal (it is "capitalized") when the loan enters repayment.
  • Up to 24 months of hardship forbearance is available as determined at VSAC's discretion.
  • Repayment periods cannot be extended beyond the original term.
  • Loan debt is canceled completely if the student borrower dies or becomes totally and permanently disabled.

INTEREST RATES & FEES

The Vermont Choice Loan has a fixed-interest rate for the life of the loan and will not vary according to market conditions.

An origination fee of 0%, 3% or 5% is added to the loan amount at each disbursement. The fee is based on the strength of the cosigner’s credit.

Repayment option

Fixed interest rate

Origination fee (determined by strength of cosigner's credit)

Annual Percentage Rate-APR

Immediate Repayment of principal & interest payments while enrolled

4.79%

0%, 3% or 5%

4.79%-5.51%

Interest accrues on the loan from the date of disbursement.

Ready to apply?

Start your secure application through MyVSAC.

VSAC VERMONT CHOICE LOAN AMOUNTS & PAYMENTS

With the VSAC Vermont Choice Loan, you choose the amount you want to borrow. Your school/program will certify your eligibility and schedule disbursements based on your enrollment period.

Minimum loan amount: $500
Maximum loan amount: Up to the cost of your education, minus any other aid, as determined by your school/program

 

MONTHLY & LIFETIME STUDENT LOAN PAYMENTS

The amount you'll pay each month—and over the life of the student loan—will vary based on your cosigner's credit history and the amount of your loan. The rate is fixed for the life of the loan and will not vary according to market conditions.

To give you an idea of monthly—and lifetime—payments, here are some examples of fees and APR for a $10,000 VSAC Vermont Choice Loan for the 2019-2020 school year. 

 

Repayment Option

Interest Rate

Fee

APR

Finance Charge

Monthly Full Payments

Total Amount Paid

Principal and Interest Payments while enrolled with:

Excellent Credit

4.79%

0%

4.79%

$4,149.80

180 @ $78.61

$14,149.80

Better Credit

3%

5.23%

$4,574.60

180 @ $80.97

$14,574.60

Good Credit

5%

5.51%

$4,857.20

180 @ $82.54

$14,857.20

 

REPAYMENT ASSUMPTIONS

  • An origination fee, when applicable, is added to each loan disbursement.
  • Loan repayment term is 180 months and begins when full payments are due. (For loans approved for less than $10,000, the maximum term is 120 months).
  • Two equal disbursements of $5000 plus an origination fee, when applicable, in September and in January and outstanding interest is capitalized at the final disbursement.
  • All payments are made on time and examples are estimates.

If you have additional questions on loan amounts and payments, call your VSAC Loan Counselor at 800-226-1029 (Monday – Friday 8:00 a.m. to 4:30 p.m.).

Ready to apply?

Start your secure application through MyVSAC.

The application process:

  1. Check to see if you may be eligible.
  2. Click APPLY and log in to MyVSAC, VSAC's secure portal. New users will need to register.
  3. Follow the steps and submit the application.
  4. VSAC will notify you of the next steps, and you can check your pending application online at MyVSAC.

Once you submit the application, there are several steps in the process. Be sure to check your emails regularly for next steps. Allow at least 2 weeks from when you submit your application to when the funds will be ready to be sent to the school. 

What you'll need to complete the online application

You as the student borrower will need to provide:
  • Name
  • Date of birth
  • Home address
  • Citizenship (Resident Alien ID # if applicable)
  • Driver’s license state 
  • Social Security Number
  • 2 personal references (someone you’ve known for at least 3 years; cannot use the cosigner as a reference)
    • name
    • address (references must live at separate addresses)
    • phone
  • School name
  • Requested loan amount
  • Approximate loan period for which you are requesting the loan (month/year)
  • Cosigner’s full name and email address
Your cosigner will need to provide:
  • Name
  • Date of birth
  • Address
  • Citizenship (Resident Alien ID # if applicable)
  • Driver’s license state 
  • Social Security Number
  • 2 personal references (someone the cosigner has known for at least 3 years; cannot use the borrower as a reference)
    • name
    • address (references must live at separate addresses)
    • phone
  • Student’s name and date of birth
  • Application Reference ID (sent by email once you apply)
  • Requested loan amount 

Ready to apply?

Start your secure application through MyVSAC.